The Compliance Center computers are programmed to select those returns with high DIF scores which reflect issues that could be easily resolved by mail. The computers select those returns which are appropriate for correspondence audits and each respective return is reviewed by either a Tax examiner or clerk. The returns are DIF screened and quality reviewed using technically proficient examination personnel who are experienced in DIF screening operations. Returns which have apparent examination issues other than those appropriate for correspondence audit are referred to the local Area Office. Some examples of the kinds of items which can be verified by correspondence are itemized deductions, such as interest, taxes, contributions, medical expenses, and simple miscellaneous deductions such as union dues and small tools. Issues other than itemized deductions may be examined if they are single matters which would not be appropriate for office audit or field examination.
If a debt is canceled or forgiven, other than as a gift or bequest, the debtor generally must include the canceled amount in gross income for tax purposes. A debt includes any indebtedness for which the debtor is liable or which attaches to property the debtor holds.
1. This section provides descriptions of assorted transcripts used internally or externally. It includes some transcript request and certifying transcripts procedures. In general, only transcripts designed for taxpayer use should be sent to taxpayers. It also includes information on the Transcript Delivery System (TDS), which is an automated system that delivers tax account and return information to the user instantly along with an appropriate cover letter (when applicable) or to the taxpayer through the post mail feature.
Gambling and Taxes = The Price of Winning By: Robert E. McKenzie ©2011 Custom Search Inclusion of Gambling Income in Gross Income Income from gambling, lotteries, sweepstake winnings, and card playing are included in gross income. Such income…
The IRS Collection Division attempts to collect delinquent taxes as inexpensively and rapidly as possible. To accomplish this task the IRS makes extensive use of computers. Only when automated methods have failed to collect a tax is the matter assigned to an individual for collection.
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